NZ: Expect a 0.5% rise in the CPI for the September - Westpac

Michael Gordon, Senior Economist at Westpac expects a 0.5% rise in the NZ’s Consumer Price Index (CPI) for the September quarter, lifting the annual inflation rate to 1.9%.

Key Quotes

“Food prices rose for the quarter, while fuel prices fell. – The strong New Zealand dollar was a disinflationary force over the first half of this year, but we expect its influence to wane in the September quarter.”

“We expect inflation to exceed the Reserve Bank’s forecast for the quarter.”

“However, with economic growth and house prices falling short of the RBNZ’s forecasts, we think that interest rates will need to remain low for even longer than the market expects.”